October 17, 2017 Item No. 9
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1 October 17, 2017 Item No. 9 AUTHORIZATION TO: 1) COMMIT CHICAGO HOUSING AUTHORITY FUNDS IN AN AMOUNT NOT TO EXCEED $15,800,000 FOR THE TAYLOR STREET LIBRARY AND APARTMENTS; 2) SUBMIT A DEVELOPMENT PROPOSAL AND EVIDENTIARY DOCUMENTS TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD); 3) APPROVE A TENANT SELECTION PLAN, LEASE, AND LEASE RIDERS FOR THE TAYLOR STREET LIBRARY AND APARTMENTS; AND 4) EXECUTE AND DELIVER SUCH OTHER DOCUMENTS AND PERFORM SUCH ACTIONS AS MAY BE NECESSARY OR APPROPRIATE TO IMPLEMENT THE FOREGOING. Address: W. Taylor Street Alderman: James Ervin Ward: 28th Presenter: Diana Liu, Chief Development & Construction Officer Recommendation The Chief Executive Officer (CEO) recommends that the Board of Commissioners of the Chicago Housing Authority (CHA) authorize the CEO or his designee to: 1) Commit Chicago Housing Authority funds in an amount not to exceed $15,800,000 for the Taylor Street Library and Apartments; 2) Submit a Development Proposal and evidentiary documents to the United States Department of Housing and Urban Development (HUD), for the Taylor Street Library and Apartments; 3) Approve the Tenant Selection Plan, lease, and lease riders for the Taylor Street Library and Apartments; and 4) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing. The requested action complies in all material respects with all applicable federal, state and local laws, and CHA Board policies. Staff have completed all necessary due diligence to support the submission of this initiative. Funding Not-to-Exceed a combined total of $15,800,000 CHA MTW, HOPE VI, and Program Income Funds Compliance Subject to compliance with M/W/DBE & Section 3 Participation. 1
2 Taylor Street Library and Apartments Background Roosevelt Square is located in the near west community area, approximately two miles from downtown Chicago. It is situated between two major institutions, the Illinois Medical District (IMD) and the University of Illinois at Chicago, (UIC). Together, these institutions employ over 50,000 people. The area is well serviced by public transit and in walking distance to retail uses. Currently, the area is served by two community centers, the Jane Addams Resource Center and Fosco Park. Community benefits include: a computer lab, programming space, meeting rooms, office space, a pool, basketball courts, day care and sports programming. The larger community is comprised of a healthy market rate rental and for sale market as well as other affordable housing developments including Barbara Jean Wright Homes. Barbara Jean Wright Homes is a 268-unit affordable housing development located at 1300 South Morgan (just west of the Roosevelt Square boundary). Roosevelt Square Under the Plan for Transformation, CHA outlined a strategy for the redevelopment of the ABLA Homes. That strategy called for the rehabilitation of Loomis Courts and Brooks Homes and the demolition of the Grace Abbott and Jane Addams Homes. In 2003, the CHA executed a Master Development Agreement, (MDA) with Related Midwest, (Related) for the development of the Roosevelt Square area. The MDA requires that Related construct 2,441 new mixed-income units. In 2005, Phases I Rental and For Sale were completed, totaling 415 units. In 2008, Phase II Rental was completed, totaling 177 units. In May 2017, the CHA Board approved the disposition of thirty-five parcels of vacant land for Phase IIA For Sale, a 50-unit market rate development. The infill development site is located 2
3 north of Roosevelt Road along West Grenshaw, South Throop and South Lytle. Related plans to break ground on the first 20 units in the second quarter of Project Description The Taylor Street Library and Apartments project is a mixed-use, mixed-income project located at the northwest corner of Taylor and Ada Streets in the Little Italy neighborhood. The project will be built on a vacant CHA site. The first floor of the project will contain the approximately 16,000 sq. ft. new Taylor Street Library. The library includes an early learning area for children, a YOUmedia Digital lab, and community meeting and study rooms. Taylor Street Apartments is comprised of 73 total residential units including 37 CHA units. The residential unit mix includes 46 one-bedroom and 27 two-bedroom units. Related Midwest plans to provide up to 37 public housing, 29 affordable and 7 market rate units. The affordable units will be available to residents earning up to 60% AMI. Proposed Unit Mix Unit Type CHA Affordable Market Rate TOTAL 1 BR BR TOTAL Taylor Library and Apartments Site Plan 3
4 CHA Financing The not-to-exceed total CHA funding of $15.8 million will provide funds for the residential portion of the project and the total estimated residential project budget is approximately $26.6 million. The development budget is subject to an Illinois Affordable Housing Tax Credit (donation tax credit) award and the construction contract. Tenant Selection Plan The proposed resolution also requests approval of the form of Tenant Selection Plan, lease, and lease riders to be used for the Taylor Street Library and Apartments development. It is understood that the developer has an interest and desire to implement its own lease forms and policy that encourages consistent community standards for the effective management of its development. Respectfully Submitted: Diana C. Liu Chief Development & Construction Officer 4
5 RESOLUTION NO CHA- WHEREAS, The Board of Commissioners of the Chicago Housing Authority has reviewed the Board Letter dated October 17, 2017 entitled Authorization to 1) Commit Chicago Housing Authority funds in an amount not to exceed $15,800,000 for the Taylor Street Library and Apartments; 2) Submit a Development Proposal and evidentiary documents to the United States Department of Housing and Urban Development, (HUD), for the Taylor Street Library and Apartments; 3) Approve the Tenant Selection Plan, lease, and lease riders for the Taylor Street Library and Apartments; and 4) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing. THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE CHICAGO HOUSING AUTHORITY: THAT, The Board of Commissioners authorizes the Chief Executive Officer or his designee to: 1) Commit Chicago Housing Authority funds in an amount not to exceed $15,800,000 for the Taylor Street Library and Apartments; 2) Submit a Development Proposal and evidentiary documents to the United States Department of Housing and Urban Development, (HUD), for the Taylor Street Library and Apartments; 3) Approve the Tenant Selection Plan, lease, and lease riders for the Taylor Street Library and Apartments; and 4) Execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing. This award is subject to the Contractor s compliance with the CHA s MBE/WBE/DBE/ Section 3 hiring and insurance requirements. Eugene E. Jones, Jr. Chief Executive Officer Chicago Housing Authority 5
6 AMENDMENT TO THE CHICAGO HOUSING AUTHORITY S ADMISSIONS AND CONTINUED OCCUPANCY POLICY THE CHICAGO HOUSING AUTHORITY S ADMISSION AND CONTINUED OCCUPANCY POLICY IS HEREBY AMENDED TO INCORPORATE AS ADDITIONAL APPENDICES THE FORM OF TENANT SELECTION PLAN, LEASE AND LEASE RIDERS FOR THE TAYLOR STREET LIBRARY AND APARTMENTS. THESE FORMS SHALL BE APPENDED AFTER IMPLEMENTATION AND ADOPTION. THESE DOCUMENTS AMEND THE CHA S ADMISSIONS AND CONTINUED OCCUPANCY POLICY WITH RESPECT TO CHICAGO HOUSING AUTHORITY RESIDENTS WHO WILL RESIDE IN THE TAYLOR STREET LIBRARY AND APARTMENTS. THE CHAIRPERSON OF THE BOARD OR THE CHIEF EXECUTIVE OFFICER IS HEREBY AUTHORIZED TO APPROVE ANY FINAL CHANGES IN THESE FORMS, INCLUDING, BUT NOT LIMITED TO, CHANGES BASED ON HUD REQUIREMENTS, OR RESULTING FROM ANY APPLICABLE NOTICE AND COMMENT PROCESS. SUCH APPROVAL SHALL CONSTITUTE CONCLUSIVE EVIDENCE OF THE BOARD S APPROVAL OF ANY AND ALL SUCH CHANGES. 6
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